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The bullish abandoned baby candlestick pattern is a bullish reversal with a good track record of reversing (ranking 13th). There is just one problem. You won't be able to
find it. The candle is rare with a frequency rank of 92nd out of 103 candle types. When you can find it, and assuming price breaks out downward, you can make some change. However, the
bear market numbers have fewer than 20 samples, so the performance is not likely to stand up.

Bullish Abandoned Baby Discussion

The bullish abandoned baby acts as a bullish reversal 70% of the time, which is very good, if you can find the candle to trade, that is. I located just 293 examples out of 4.7 million candle
lines, and I checked every adoption center in the state!

The best average move 10 days after a breakout is a drop of 10.31% in a bear market. Since I consider moves of 6% or higher to be good, this one is a barn burner. Unfortunately, it is based
on just 14 candle patterns. That means it is unreliable and likely to change. However, such a large drop in 10 days gives the candlestick a performance rank of 1 -- first place. Yippee!

Bullish Abandoned Baby Identification Guidelines

Characteristic

Discussion

Number of candle lines

Three.

Price trend leading to the pattern

Downward.

Configuration

Look for the bullish abandoned baby in a downward price trend and find a black candle as the first day. Following that, a doji
should appear that gaps below the two adjacent candle shadows. The last day is a white candle with a lower shadow that remains above the top of the doji.

Bullish Abandoned Baby Example

The chart shows a bullish abandoned baby circled in red on the daily scale. Price trends downward for a few days before the candle pattern begins.

The first day is a black candle of any shape -- wide, tall, who cares? The next day is the doji. A doji is a candle line in which the opening and closing prices are within pennies
of each other. The final day is a white candle. There must be a price gap between the top of the doji and the surrounding two candles, like that shown in the figure.

Since the price trend leading to this bullish abandoned baby is downward and the breakout is upward, this candle acts as a reversal. An upward breakout is when price closes
above the top of the pattern. A downward breakout would be a close below the bottom of the three-line pattern. Notice that the upward price trend after the bullish abandoned baby
does not last long.